The construction industry contributes 8% of GDP but it is reported that productivity growth in the industry lags other major industries by 25%.

The opportunity of closing this gap is enormous. Just halving this productivity gap would result in savings of $15 billion annually and, importantly, ensure the industry is positioned to deliver the record pipeline of projects.

Improving productivity performance is not a matter of choice. The industry is facing a critical workforce shortage of over 100,000 workers within the next 12 months and with low unemployment it is thought there is no volume of migration or training that will solve this challenge.

Proposed Reform Areas For the Industry

The five reform areas identified for the industry are:

1. maintaining full employment and productivity;
2. boosting job security and wages;
3. lifting participation and reducing barriers to employment;
4. delivering a high-quality labour force through skills, training and migration; and
5. maximising opportunities in the “industries of the future”, such as driving net zero emissions outcomes.

Where are the jobs at the moment?

The Australian Bureau of Statistics on 14^th September issued labour statistics for the construction industry using modelling indicating state level industry job estimates to show where the jobs are at the moment:-

268,000                Queensland

371,700                New South Wales

282,700                Victoria

70,900                  South Australia130,600 Western Australia

21,300                  Tasmania

13,500                  Northern Territory

18,100                  ACT

Jobs and Skills Summit 

The issuing of an ‘Employment White Paper’ which will likely be the blueprint for the Australian Government’s workplace and industrial relations reform agenda is proposed to be calling for reform to rules around skilled migration, target ‘insecure work’, casual employment, the use of successive fixed-term contracts and improving access to pay equity.

Whilst much still remains in flux and the mechanics still thin, some of the potential changes on the horizon are as follows:-

1. Amending the Fair Work Act 2009 (Cth);
2. Varying the existing statutory definition of a ‘casual employee’
3. Making superannuation payable on parental leave;
4. Mechanism by which employees can more readily pursue employers for unpaid superannuation;
5. Implementing the balance of the 55 recommendations from the Respect@Work Report published March 2020;
6. Implementing limits on use of consecutive fixed-term contracts;
7. Outlawing pay-secrecy provisions in employment contracts;
8. Enhancing the mechanisms available to achieve pay-parity between workers, particularly for women and labour-hire employees;
9. Creating a new ‘national employment standard’ for employees to take up to 10 days of paid family and domestic violence; and
10. Abolishing the Registered Organisations Commission (the Federal regulatory body for unions) and the Australian Building and Construction Commission (which enforces compliance with workplace laws in the construction sector).

This is by no means an exhaustive list of reform outcomes in the mix and changes will have repercussions for employers and Australian working arrangements more broadly. Interesting times ahead for the construction industry.

Industry Training Blitz

Prime Minister Albanese, in his opening address, said: ‘We are going on a training blitz’ as he announced 180,000 fee-free TAFE places for 2023, which brings forward a commitment of $1billion of additional training that we do not have now. These extra places will be rolled out in a fairly short period of time and a major challenge, of course, will be getting teachers in the TAFE system to be able to deliver the extra training.

National Skills Week’s Chairman, Brian Wexham, has labelled a serious shortage of skilled construction workers as the cause of slower delivery times and an increase in cost for home builds and major infrastructure projects, with a predicted 100,000 unfilled roles by 2023. 

It is critical that school leavers, job seekers, parents and career changers are informed of what the jobs of the future are, and what Australia’s most critical skills shortages and jobs needs are.

Workers and skills are at the heart of this, and the current discussions bring together some of our country’s largest employers in these critical sectors.

“The task before us is massive but one that we have to tackle. A big part of driving productivity and economic gains is creating secure, well-paid jobs.”

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